Mukund Das Heda Vs ITO (ITAT Hyderabad)
Assessee appealed against a reassessment order passed u/s 147 r/w 144 & 144B, but before CIT(A) he did not respond to notices, leading to an ex-parte dismissal. However, ITAT found that CIT(A) failed to adjudicate several legal grounds, including challenges to the validity of reassessment, which were clearly raised before him.
U/s 250(6), the CIT(A) must pass a speaking, reasoned order addressing each ground. Since CIT(A) ignored all grounds & dismissed the appeal mechanically, ITAT held that this amounted to denial of proper appellate remedy.
Tribunal therefore set aside CIT(A)’s order & restored the matter to him for fresh adjudication on merits, directing that Assessee be given proper opportunity & also asked not to delay proceedings.
Held: Ex-parte dismissal without adjudicating grounds violates Section 250(6); appeal restored for de novo consideration.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
This appeal is filed by Shri Mukund Das Heda (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”) dated 04.03.2025 for the A.Y. 2016-17.
2. The assessee has raised the following grounds of appeal:
3. The brief facts of the case are that the assessee had filed an appeal before the Ld. CIT(A) against the order passed by the Learned Assessing Officer (“Ld. AO”) under section 147 read with sections 144 and 144B of the Income Tax Act, 1961 (“the Act”) dated 16.03.2024 for the Assessment Year 2016–17. However, the assessee could not respond to the notices issued by the Ld. CIT(A) during the course of appellate proceedings. Consequently, the Ld. CIT(A) proceeded ex-parte and dismissed the appeal filed by the assessee.
4. Aggrieved by the order of the Ld. CIT(A), the assessee preferred the present appeal before this Tribunal. At the time of hearing, the assessee filed an adjournment petition seeking time. However, considering the facts of the case, without accepting the adjournment petition, we proceeded to adjudicate the issue on the basis of material available on record. In this regard, we have gone through the grounds raised by the assessee before the Ld. CIT (A) which is placed at page no.3 of the order of the Ld. CIT(A), which is to the following effect:
5. On perusal of the above, we observed that the assessee had raised several grounds of appeal before the first appellate authority, including certain legal grounds challenging the validity of the reassessment proceedings. We have also gone through the adjudication made by the Ld. CIT (A) which is placed at para no.4.2 of the order of the Ld. CIT (A), which is to the following effect:
6. On perusal of the above, we find that the legal grounds raised by the assessee before the Ld. CIT (A) have not been adjudicated at all. The Ld. CIT(A) dismissed the appeal ex-parte without recording any findings on merits on each of the grounds raised by the assessee. As per the mandate of section 250(6) of the Act, it is obligatory for the Ld. CIT(A) to dispose of each appeal by passing a speaking order, stating the points for determination, the decision thereon, and the reasons for such decision. Non-adjudication of specific grounds raised by the assessee amounts to violation of section 250(6) of the Act and denial of effective appellate remedy.
7. During the course of hearing, the Learned Departmental Representative (“Ld. DR”) fairly accepted to the observations of the Bench that certain grounds raised before the Ld. CIT(A) were not adjudicated.
8. In view of the above facts, and in the interest of justice, we deem it appropriate to set aside the impugned order of the Ld. CIT(A) and restore the matter to his file with a direction to adjudicate the appeal afresh on merits by passing a speaking and reasoned order in accordance with law. The Ld. CIT(A) shall afford due opportunity of being heard to the assessee, who shall be at liberty to file necessary submissions and evidences in support of his claims. At the same time, the assessee is also directed not to seek unnecessary adjournments and to cooperate in the disposal of the appeal. Accordingly, the impugned order of the Ld. CIT(A) is set aside, and the matter is restored to his file for de novo adjudication.
9. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the Open Court on 7th November, 2025.
